Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tax Policy topic
No spam. Unsubscribe anytime.
Council schedules public hearing on tax‑sale interest change to protect homeowners
Summary
The council set an Aug. 24 public hearing on a proposed local law to charge interest only on amounts due to the city for tax‑lien sales, a change officials said would prevent bidders' excess offers from inflating homeowners' interest bills.
The Port Jervis Common Council voted to set a public hearing for Aug. 24 on Local Law No. 3 (2026), which would alter the city's tax lien‑sale redemption rules so interest accrues only on the amount actually due the city rather than on the full winning bid.
Jason Mcgrew, speaking during the code agenda item, described the current problem in which bidders would offer large sums above the tax due, causing the successful bidder's amount to be treated as the principal for interest calculations. "Somebody owed only a couple thousand dollars and somebody came in and bid a 160,000," Mcgrew said, adding that homeowners then faced interest charged on inflated sums and sometimes lost properties as a result. The proposed local law would limit interest to the outstanding city charges (taxes, water bills, DPW services) rather than excess bidder amounts.
Council members classified the amendment under SEQRA as a Type 2 action and voted to set the public hearing. The hearing will allow residents and stakeholders to comment before any final adoption; the council will take public testimony on the proposal on Aug. 24.
